Liquefied Natural Gas Lng Economics Essay

Liquefied Natural Gas Lng Economics Essay Liquefied Natural Gas forecasts are highly-structured and capital intensive in order to protect the investment return that projects developers conventionally covered all their future LNG. The past years have witnessed a dramatic development in LNG industry which is under metaphases from an infant towards a maturing industry with the ongoing process of slackening in the world market, LNG plays an increasingly important role in meeting the rapid gas demand worldwide by offering its merits of diversification and flexibility for securing gas supply of price signals cross isolated regions. According to BP 2010 So far, LNG accounts for 30.5% of world trade volume and the figure is expected to be growing. Over the past five years it has became acceptable industry practice for even contractually committed LNG with a specified destination to be diverted to another market with mutual agreement of both the seller and the buyer. The financial incentives to benefit from market in efficiency and regional supply-demand motivated market players to allow ad-hoc cargo diversions, sharing the profit resulting from the arbitraging between the respective parties. With a careful study of the process of arbitrage from school of thought: Prof. Dr. Hasret B. and others; I have been privileged to understand the nature of LNG and why is not neglected. This same study put up a questions: who are the arbitrageurs, what are the constraints and limitations they fall, and why arbitrage can fail to bring prices close to the fundamental value which implied by standard models. However, the focus of this article on the nature of LNG arbitrage and its theoretical growth in global markets reveals theoretical development within a simple model and also suggest directions for future research. According to Zhurravleva (2009), he pointed out why the LNG project is still in existence In 2007, the Equatorial Guinea LNG project sold its entire LNG output on a FOB (Freight On Board) basis to BG for 15 years, without incorporating a destination clause in the contract. Now what she actually meant here is that the business has enabled the buyer (BG) to divert the cargoes and act as aggregators (arbitrageur), effective and monetizing their delivery. Other significant sources of flexible cargoes are Qatar, Trinidad and Tobago, Algeria and Egypt. The classic destination and the availability of non-committed shipping capacity are not the only barrier towards the LNG arbitrage rather than other factors such as; technical and market restrictions, high transaction costs which hinder LNG diversions. The significance of these barriers varies overtime and differs from market to market; however it is important to understand the aforementioned theoretical importance and the extent to which they may constrain the development of the global LNG arbitrage market. Therefore with a clear observations of The Unique Features of the LNG Shipping Market: A Study of Ship-owners Structure and Fleet Distribution by Wang, S. et al 2011; a common assumption refers to the spending race in which high frequency traders employ LNG trading to execute orders as fast as possible in other to gain an edge in trading. This is because LNG arbitrage was viewed as natural conventional evolution that eventually would translate into more efficiency in the market place as the speed down to all investors in the markets. The past years of a close witness of how LNG industry put up a dramatic development still remain green in my mind till today. This because I was present creating inspirations with mine Late Timothy O. Anyanwu.; he gave breath to me and nurtured me towards the business in sub-region at Enugu, Nigeria. From a clear concept of it is being characterised with a high-structured and capital intensive one which is tied with a long-term contracts for years or more. He maximized a transparent and profitable annual return for Oando Nigeria Plc till present. 1.2 LITRATURE REVIEW With the general growth of LNG arbitrage research in business and financial project sectors, it would be glare to put a distinct relationship or differences between a considerable attention I recent years. In some research attempts to go beyond the project assumptions about how is being created for several years, they focused on point of context from one point of view which uses conversation analysis, such as LNG arbitrage, barrier and other interactional features. It inter-related some research which has focused only on the description of differences, other work has shown clearly how LNG projects reflect and reproduce financial differences. Accordingly, Zhuravleva (2009) pointed that the significant of barriers towards LNG varies overtime and differ from market to market. He pointed also that is important and to the extent to which they may constrain to the development of the global LNG arbitrage market. According to Mazighi (2003) considered that the globalization of LNG markets requires four conditions to be met; the natural, the economic, the technical and the institutional conditions. Much of the earlier work emphasized dominance. Neuhoff Hirchhausen (2008) suggested that assets-specific investments and uncertainty along with the LNG supply chain imply high transaction costs. He went further to point that long-term contracts can however help to minimize the transaction costs for two parties engaging in the commitment. According to an empirical analysis of Ruester (2006) it showed that in response to market deregulation, vertical integration was driven by upstream producers moving downstream with ownership of transportation capacities to exploit arbitraging possibilities and distribution and power companies moving upstream to ensure margins and security of supply. While some of the more popular work of this type, such as Jensen (2004), there are some potential similarities between the oil market and the natural gas market, however the way a global LNG market will set up is found to be different. The high cost of LNG transportation is one of the main reasons preventing the LNG market to be as flexible as oil market. He went further to point out that; long-term contracts in LNG have been the vehicle for sharing the large up-front investment risk characterize LNG projects, the short-term trading had been growing fast in recent years given the declining costs along the supply chain, the growing diversity of supply sources and loosening of the conventional rigid industry structure. Thus, the long term contract still remains a mainstay of international trade, and the growth of short-term trade volume and price arbitrage are limited accordingly. Although Zhuravleva (2009) distinction is clearly a useful one, it is also seems evident that the some useful approaches are by no means mutually exclusive. While is important on one hand, therefore, it is important to focus on the development of LNG arbitrage even when there is constrains. It also pointed out some conversation support on (P.2) clearly there is scope with great deal to expand in the area of this topic research Is based on embryonic stage of development Establish more insight on a clear formation of LNG arbitrage. Distinguish between LNG arbitrage with other trade activities relating to LNG markets. 1.3 METHODOLOGY This article is based on primary research. It involves three components: online questionnaires, interviews, mine experience in the business in Nigeria and feedback from the presentations of the research referring to Zhuravleva (2009) Oxford Institute of Energy Studies (OIES) The target group for the research was carefully selected to provide an informed range of insight. Thus, among the participant were natural gas and LNG traders, leading independent consultants, senior figures from several of the major energy companies and publishers of LNG journals and bulletins. The surveys sample size is relatively small due to the highly specialized nature of the topic, the dearth of trusted specialists in the LNG arbitrage trade and the difficulty in accessing experts. Nevertheless, the profiles and experience gathered by mine self and the participants were representative of the best in the sector. The data for the qualitative analysis was obtained with the help of the online questionnaires. When all the responses were collected, each participant were interviewed to assist in the qualitative analysis of the data. 2.1 Defining LNG Arbitrage Arbitrage is defined as the simultaneous purchase and sale of the same tangible goods in two different markets for advantageous purpose of different prices; but here such arbitrage required no capital and entails no risk Thus, referring to LNG arbitrage it means a physical cargo diversion from one market to another or re-experts of cargoes to spot gas market in markets in which gas prices are as much as high that covers the costs and profit remains. According to Zhuravleva (2009) defined LNG arbitrage as a physical cargo diversion from one market to another, which offers a higher price. He explained further that the diversion of the cargo can be regarded as arbitrage if the cargo was initially committed to the first market and to the initial buyer in a commercial contract. Two key drivers for arbitrage are commercial and operational. Commercial Driver: This is the ability to take advantage of price differential between the markets, which arise due to differing pricing structures, variations in the relative balances between supply and demand and market inefficiency. Operational Driver: This is the financial lose minimization in case of plant outages overfill storage tanks or force. However, advocates of unique world market for gas has to take into account that arbitrage are costly, and thus can lead only in some convergence of prices between different regional markets but not to the full price. According to Ikonnikova (2009), it makes the market flexible option and allows market players to benefits from arbitrage opportunity playing on price differential across regional market. 2.2 Models of LNG Arbitrage These are the three main models used in LNG trading; Models I: Seller Arbitrage: Here seller and buyer are used to indicate the seller of LNG cargo and the buyer of the LNG cargo. Initial buyer is the customer for whom the LNG has been initially contacted, while End Buyer is the purchaser of the diverted LNG. Model II: Initial Buyer Arbitrage: This model points out that the initial buyers market prices remain stable due to players profits from the arbitrage and replaces the LNG by spot cargoes later. Commonly used by Spanish Importers. Model III: Independent Trader Arbitrage: In this model another player called Independent Trader appears in the transaction. He buys the cargo from the initial buyer (Seldom from LNG Seller) and gets the right to divert the cargo to another customer offering a higher price. E.g., Garpron and Gas De France 2004. 2.3 Barriers to the Growth of LNG Arbitrage in Global Market After a qualitative analysis from the questionnaires of this article, the growth of the LNG arbitrage market implies an increase in the number of arbitrage transactions annually and the increase in the volumes that are being diverted one market to another. They are more than 12 barriers towards the growth of LNG arbitrage in global market but few will be mentioned here. They are as follows; The Price Differential Between Markets is Not Great Enough: Price spread must be great enough to cover the transaction costs and be a sufficient incentive for the aggregator, who often has to share the profit with another party. Without a price spread that allows the trader to profit, no arbitrage transaction will take place. Small Number of Players in the LNG Market: If two buyers are present for transaction in market then an arbitrage deal should be potentially possible. But they are rarely scarce for transaction. Lack of Price Transparency: Lack of price transparency complicates arbitrage trade and demand quickness of wit and good connections between the traders. In relations to countries involved in LNG trade, the US and UK gas market are the most transparent and liquid in the world while in continental European gas market where LNG is important Spain, France and Belgium. 3.1 CONCLUSION AND RECOMMENDATIONS With clear evidence on todays LNG world, it has been argued that it will drive the world markets for natural gas from region to unique world price but with a qualitative observation, the growing role of LNG arbitrage opportunities between countries differ from each other. And at the same time, the price gap between countries also differs because of its landing cost (transportation cost). We suggest a positive recommendation which could guide the global world at large which is UNIFORMITY in terms of LNG arbitrage operation. More research need to be done to enable expand this article aforementioned toward; its embryonic growth development, clear formation of LNG arbitrage and trade activities relating to LNG markets. REFERENCES Billingsley, R. (2005), Understanding Arbitrage: An Intuitive Approach to Financial Analysis. Wharton School Publishing, US BP Statistical Review, 2010. Chabrelie, M. (2003) A new trading model for the fast-changing LNG industry, first Asia Gas Buyers Summit. Clarkson research services (2010) Report of LNG Trade and Transport 2010. Facts Global Energy (2008), East West LNG Pricing Comparison: New Trends. New Frontiers, And Future Price Markets, Presented at Gastech, March 12th 2008, Bangkok, Thailand. Ikonnikova S., 2009, Strategic model of LNG arbitrage: analysis of LNG trade in Atlantic Basin, in 32nd International Association for Energy Economics Conference Proceedings. Institute of Energy Economics, Japan (2008), Natural Gas and LNG Supply/Demand Trends in Asia Pacific and Atlantic Markets. Tokyo, Japan. Jensen, J.T. (2004), The Development of a Global LNG Market. Oxford: Alden Press. Neuhoff, K., von Hirchhausen, C., (2005) Long-term vs. Short-term Contracts: A European Perspective on Natural Gas. Ruster, S., and Neumann, A., (2006) Corporate Strategies along the LNG Value Added Chain An Empirical Analysis of the Determinants of Vertical Integration. Wang, s., Notteboom, Theo E. (2011). The Unique Features of The LNG Shipping Market: A study Of ship-owners Structure And Fleet Distribution. Paper presented at IAME 2011, Santiago de Chile, 25-28 October 2011.World Bank Commodity Price Data, March, 2012. Zhuravleva. P. The Nature of LNG Arbitrage, and an Analysis of the Main Barriers for the Growth of the Global LNG Arbitrage Market, Oxford Institute for Energy Studies, NG 31, June 2009. TABLE OF CONTENTS Cover Page i Abstract ii Key words ii I.1: INTRODUCTION 1 : LITERATURE REVIEW 4 : METHODOLOGY 5 2.1: DEFINING LNG ARBITRAGE 6 Commercial Driver 7 Operational Driver 7 2.2 Models of LNG Arbitrage 8 2.2.1 Model I: Seller Arbitrage 8 2.2.2 Model II: Intial Buyer Arbitrageur 8 2.2.3 Model III: Independent Trader Arbitrage 9 2.3 Barriers to the Growth of LNG Arbitrage Global Market 9 3.1 CONCLUSION AND RECOMMENDATION 9

Law School Admissions Essay - The Spirit Lives -- Sample Law School Ad

"Hasta la victoria siempre." (Che Guevara) I want to study law so I can help people with problems in the workplace.   I am unhappy with the decrease in real wages, the huge increase in temporary and part-time employment that includes few or no fringe-benefits, and the continued existence of unsafe work places.   I believe that technological advances are going to continue to put people out of work, perhaps on a massive scale, in the next twenty to fifty years, and that government, business, and workers will have a new opportunity to share the gains in productivity that are to come.   I believe that people have the right to work at a job that allows them to afford to raise a family, live in a comfortable, safe home, and work in a safe environment.   I want to devote my work to improving workers' pay levels, assuring them access to health care, paid vacation time, fair treatment by their employers, and physical safety in the work place.   Increasing the number of safe, well-paid, secure jobs will go a long way towards helping alleviate many of the social ills that are associated with poverty.   Ã‚  Ã‚   I was involved with labor issues at my job at the San Francisco International Youth Hostel, where I worked from 1992 to 1996.   I helped organize a group of workers there to discuss our work place and to smooth out scheduling conflicts between management and our group of workers.   In September 1995, part-time staff's holiday pay was taken away without any discussion at all, and I called the Executive Director of the Company the (The Golden Gate Council) and persuaded her to re-institute it.   I was regularly consulted for my opinion on various wage, hour and working-condition matters.   Ã‚  Ã‚   I have seen how working people organize them... ...ing as a community organizer for a volunteer service-exchange program that benefits seniors and the disabled.   the work I am doing reinforces the goals I have of helping solve problems in the workplace.   At my job here in West and South Berkeley, I have again seen the poverty that a dearth of good jobs breeds in a community.   I want to help raise my community's living standards through a more equitable sharing of the resources we transform in our workplaces.   Ã‚  Ã‚   The last thing I can say about myself is that I am interested in almost everything and hope to learn much more about solutions to social problems, science, questions of spirituality and religion, history, visual arts, music, literature, and the list could go on for a while form there.   The curiosity and interest in knowing about the world is an asset that I will take into whatever endeavor I choose.   

A Case of identity Essay

Through a comparison of ‘A Case of identity’ and ‘The Stolen Cigar case’ discuss how successful Bret Harte is in parodying Sir Arthur Conan Doyle.  There are two forms of detective story: there is the ‘who dunnit’ idea in which gentlemen detectives are called upon in all sorts of impossible situations, but always manage to solve the crime. In this type, the reader has a good idea of who committed the ‘crime’; however, the characters in the story don’t. The other type of story is a mystery, in which neither reader nor investigators know who is responsible for the crime; together with the characters, the reader too is invited to figure out the sequence of events. In the Sherlock Holmes stories the focus is on the character of the detective himself (Sherlock Holmes) and follows the story of him solving a mystery. Sherlock Holmes (S.H) was a legendary figure as he was the very first fictional detective; his stories were written in the Victorian times by the writer Sir Arthur Conan Doyle.  The S.H stories have many common features. For example S.H is seen to be very well organised and by the end, his efforts have concluded in solving the mystery/crime. This has made it easier for Bret Harte to parody Conan Doyle’s style; he uses many similar features like the same old fashioned language and also in having Sherlock Holmes or Hemlock Jones (as he is called in the parody), portrayed as a very precise, eccentric detective. In the original story, we are told of how Miss Mary Sunderland goes to S.H to find Mr Hosmer Angel-her missing bridegroom-who disappeared on the day of their wedding. S.H manages to find this man, so uncovering the fact that it is her step-father in disguise!  In the parody; ‘The Stolen Cigar Case’, Hemlock Jones (H.J) accuses Watson of stealing his cigar case and constructs an elaborate/exaggerated story to prove his point, only to find he had misplaced it! In ‘A Case of Identity’ Watson is the narrator, who, as he is some what naà ¯Ã‚ ¿Ã‚ ½ve, has to have things explained to him; this assists the reader. He tries to work out S.H’s process of deduction, often unsuccessfully, so S.H explains in a straightforward manner through Watson to the reader. He takes the role of the pupil and is a necessary link between Sherlock and the reader. As we look at things from Watson’s point of view we are able to see how S.H unravels the cases and solves the crimes. S.H is admired greatly by Watson; likewise readers also come to admire him as an exponent of ratiocination. Throughout the story, the impression is given that S.H’s previous clients have all been people high up in society as he had â€Å"a little souvenir from the king of Bohemia† in return for Sherlock helping him with a case. He has many valuable belongings, many of which have been gifts from wealthy clients of his such as his â€Å"snuff-box of gold†.  He also refers to similar cases to the ones he is working on â€Å"You will find parallel cases, if you consult my index, in Andover in ’77†. This also shows that he is an experienced detective with a powerful memory and someone in whom one can have faith.

Biographical Profile of William Wordsworth

Biographical Profile of William Wordsworth William Wordsworth, with his friend Samuel Taylor Coleridge, began the Romantic movement in British poetry with the publication of their Lyrical Ballads, turning away from the scientific rationalism of the Enlightenment, the artificial milieu of the Industrial Revolution and the aristocratic, heroic language of 18th century poetry to dedicate his work to the imaginative embodiment of emotion in the ordinary language of the common man, seeking meaning in the sublimity of the natural environment, particularly in his beloved home, England’s Lake District. Wordsworths Childhood William Wordsworth was born in 1770 in Cockermouth, Cumbria, the scenic mountainous region of northwest England known as the Lake District. He was the second of five children, sent away to Hawkshead Grammar School after his mother died when he was 8. Five years later, his father died, and the children were sent to live with various relatives. The separation from his orphaned siblings was a severe emotional trial, and after reuniting as adults, William and his sister Dorothy lived together for the rest of their lives. In 1787, William began his studies at St. John’s College, Cambridge, with the help of his uncles. Love and Revolution in France While he was still a university student, Wordsworth visited France during its revolutionary period (1790) and came under the influence of its anti-aristocratic, republican ideals. After graduating the next year, he returned to continental Europe for a walking tour in the Alps and more travels in France, during which he fell in love with a French girl, Annette Vallon. Money difficulties and political troubles between France and Britain led Wordsworth to return alone to England the following year, before Annette bore his illegitimate daughter, Catherine, whom he did not see until he returned to France 10 years later. Wordsworth and Coleridge After returning from France, Wordsworth suffered emotionally and financially, but published his first books, An Evening Walk and Descriptive Sketches, in 1793. In 1795 he received a small legacy, settled in Dorset with his sister Dorothy and began his most important friendship, with Samuel Taylor Coleridge. In 1797 he and Dorothy moved to Somerset to be closer to Coleridge. Their dialogue (really â€Å"trialogue†Dorothy contributed her ideas as well) was poetically and philosophically fruitful, resulting in their joint publication of Lyrical Ballads (1798); its influential preface outlined the Romantic theory of poetry. The Lake District Wordsworth, Coleridge and Dorothy travelled to Germany in the winter after the publication of Lyrical Ballads, and on their return to England Wordsworth and his sister settled at Dove Cottage, Grasmere, in the Lake District. Here he was a neighbor to Robert Southey, who was England’s Poet Laureate before Wordsworth was appointed in 1843. Here also he was in his beloved home landscape, immortalized in so many of his poems. The Prelude Wordsworth’s greatest work, The Prelude, is a long, autobiographical poem which was in its earliest versions known only as â€Å"the poem to Coleridge.† Like Walt Whitman’s Leaves of Grass, it is a work that the poet labored over during most of his long life. Unlike Leaves of Grass, The Prelude was never published while its author lived.

Korean war 2 essays

Korean war 2 essays Common conjecture has it that child labour was more or less wiped out in post-liberation China and that its reappearance is directly linked to the increased role of private enterprise in the Chinese economy. It was well known that the use of child labour was widespread before the Chinese Communist Party (CCP) took power in 1949. The use of children was a fundamental part of China's first attempts to industrialize. The following description of a Tianjin cotton mill is the early 1930's illustrates this: "Children labored in every department: boys in the departments where male adults predominated, girls in the women's department. In the spinning mills they were most often put to work at piecing.... In the weaving mill they were assigned to heddling, or threading the warp along a set of parallel cords in the loom. Both these jobs require excellent eyesight, dexterity and concentration." (1) Once the CCP took power in 1949, the new government set about reforming the education system and getting children out of the workplace and back into school. Its success in the reduction of child labour in China was significant. But it is hard to measure how significant and successful it was because of government propaganda at that time claimed near total success, but independent Nonetheless, the fact that child labour is now clearly back is largely accepted both inside and outside China, even if it's extent remains mostly unmeasured. It seems that officials with the Ministry of Labour and Social Security (MOLSS) are not acknowledging the existence of the problem. According to a article published in Hong Kong, officials at the MOLSS "claim that no government figures are available because child labour is not a problem in China." (2) China's minimum age for legal employment is 16 years old. Many of the child who get jobs in China's coastal regions do so on the basis ...

The Observation Instrument Paper Essay Example | Topics and Well Written Essays - 750 words

The Observation Instrument Paper - Essay Example This renewed interest has been stimulated by the education accountability movement, the teacher minimum competency movement, and the continuing emphasis on excellence in education Contemporary teacher classroom performance†. (Carolyn Lavely,   Neal Berger,   Joseph Blackman,   John Follman,   Jan McCarthyObservation instruments Education,   Summer, 1994    - retrieved on 4/11/2008 rethttp://findarticles.com/p/articles/mi_qa3673/is_/ai_n28646693) The class room teacher observation instruments will help a teacher for a diagnosis about his level of teaching. How far a teacher is effective for the students in the classroom? What are the defects of the methodology implemented by the teacher? How can a teacher correct himself? Which errors should be corrected and which should be ignored? Who should be correcting the errors? Is it appropriate to correct the mistakes in the classroom itself? These questions can be answered in order to improve the level of teaching with the help of observation instruments. The most commonly used classroom teacher observation instruments are â€Å"Classroom Observation Form Open Ended – (Form A), Classroom Observation Report, Classroom Observation The observer will check the development of learning materials, Use and selection of instructional materials, the learning climate, variety of materials used, preparation of the class session, method of instruction and student participation, student responses and feedback, learning difficulties etc. using the Classroom Observation Form Open Ended – (Form A). The observer can study whether the objectives for the specified class given or not. He can also analyse the outcome of the instruction. He can also analyse the appropriateness, quantity and quality of the instructional materials used. The class climate also can be analysed using this instrument. The overall activeness, the student attitude towards the topic and the teacher, their participation and the teacher’s

Carolina Pad and the Bloggers Assignment Example | Topics and Well Written Essays - 250 words - 1

Carolina Pad and the Bloggers - Assignment Example According to the case, Carolina Pad received numerous requests from the internet bloggers for cash payments to exchange them for the product reviews. Unfortunately, the requests from bloggers were less than $1000, which are relatively small amounts according to her. The whole company believed that giving bloggers the task would offer them a significant return at a higher rate for their promotional budget, as compared to the traditional forms of advertising. Such idea is similar to many other companies of awarding bloggers the task to review their products, although Carolina Pad was not sure about their charges. However, this case is aimed at examining the ethical analogy of spending a lot of money in paying the bloggers to review the products. Moreover, the paper recommends the alternative actions that Carolina Pad should use instead of using bloggers to promote their products. Carolina Pad needed only to forecast for the seasonal demand for their products before selecting any form of promoting their products (Lawrence, p. 14-50). This is because the advertising method varies with a region or personal stores. The company also needed to adopt better planning to supply the big-box to bloggers the task, since the promotion depends on the target customer in order to be effective. In conclusion, in analyzing the ethical dilemma facing April Whitlock, I would recommend to first to conduct a research analysis for the target customers and using the fashion method of advertisements such as social media. This can be only achieved by forecasting the demand ration for every product before investing in promotional costs.